In a significant move within the mining industry, Sweden’s Boliden has agreed to acquire two prominent European mines from Canada’s Lundin Mining for an upfront payment of $1.3 billion, with potential additional payments of up to $150 million. The acquisition includes the Neves-Corvo mine in Portugal and the Zinkgruvan mine in Sweden.
The deal, which is expected to close by mid-2025 pending regulatory approvals, is projected to nearly double Boliden’s zinc concentrate output and boost copper production by 43%. Boliden CEO Mikael Staffas emphasized the “industrial logic and strategic fit” of the acquisition, noting it will secure critical supplies for the company’s smelters amid rising global competition for resources. The new assets are expected to contribute between $300 million and $350 million in annual earnings over the next five years.
The purchase will be financed through a bridge loan, with half the amount to be refinanced via a share issue and the remainder through medium- and long-term debt.
The Neves-Corvo mine, located in Portugal’s Iberian Pyrite Belt, is an underground operation with on-site processing facilities. In 2023, it produced 108,812 tonnes of zinc, 33,823 tonnes of copper, and 1.9 million ounces of silver. Similarly, Sweden’s Zinkgruvan mine yielded 76,349 tonnes of zinc, 26,284 tonnes of lead, and 2.3 million ounces of silver in the same year.
For Lundin Mining, this transaction marks a strategic pivot towards South America. Earlier this year, the company partnered with BHP (ASX, NYSE: BHP) in acquiring significant stakes in two major projects—the Filo del Sol project in Chile and the Josemaría copper-gold-silver project in Argentina. Both ventures are central to Lundin’s strategy of expanding its global base metals portfolio.
